What must be run on applicants prior to binding a policy?

The requirement to run a Property LIS (Loss Information Services) or CLUE (Comprehensive Loss Underwriting Exchange) report on applicants prior to binding a policy is crucial because it provides the insurance underwriter with insights into the applicant's past claims history. This information helps assess the risk associated with insuring a particular property and the likelihood of future claims.

The LIS/CLUE report includes a detailed history of any claims made on the property, including the nature and amount of those claims, which allows the insurer to make an informed decision regarding coverage and premiums. Recognizing prior claims and loss history can significantly impact underwriting guidelines, ensuring that the policy is appropriately tailored to the risk level presented.

In contrast, while credit history checks, insurance fraud history, and personal interviews may also be part of the underwriting process, they are not universally required to be completed before binding a policy in the context of manufactured homes. These factors serve different purposes in evaluating risk and may be used in various scenarios depending on the insurer's policies and the nature of the application.